The company said it has entered into a letter of intent with Sun Holdings, an operator of almost 400 restaurants in Texas and Florida -- including Burger King, Popeye's, Arby's, CiCi's, Golden Corral, and Del Taco, as well as 10 T-Mobile stores -- to develop the donut chain in the Dallas area. The sale of the stores is subject to certain conditions, including the execution of a definitive asset purchase agreement and a development agreement.
As of February 3, Krispy Kreme had 142 domestic franchise stores in 29 states, consisting of 99 factory and 43 satellite stores.
Krispy Kreme Senior VP of U.S. Stores Cindy Bay said: "Execution of the letter of intent with Sun Holdings represents another step forward in our plans to accelerate the pace of domestic franchise expansion. We look forward to announcing the execution of definitive agreements for the Dallas market."
Headquartered in Winston-Salem, N.C., Krispy Kreme Doughtnut has 770 locations in 22 countries around the world. It generated $448 million in revenue over the last 12-month period ending May 5.
Fool contributor Rich Duprey and The Motley Fool have no position in any stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.